Top US securities regulators urged a federal judge that Elon Musk’s Twitter account should continue to be monitored, despite his allegations this amounted to harassment.
The Securities and Exchange Commission said Tesla Inc (NASDAQ:TSLA)'s chief executive had not stuck to a 2018 consent order insisting lawyers approve tweets and public statements related to the world’s richest man’s company.
"When it comes to civil settlements, a deal is a deal," the SEC said.
The dispute came from the US regulator’s allegation that Musk misled investors to believe Tesla could be taken private as “funding [was] secured” but in reality, a buyout was not close, Reuters said.
The CEO and company each paid a US$20mln civil fine and he also stepped down as chairperson.
The South African-born American entrepreneur claimed the SEC was harassing him with “roving and unbound” investigations to punish him for criticising the US government and exercising his right to free speech under the First Amendment, Reuters added.
"Musk complains about 'the sheer number of demands' by the SEC from 2018 to the present, which he characterizes as harassment," the SEC said.
Musk had hoped a subpoena demanding for records of his November Twitter poll asking users if he should offload 10% of his Tesla stock would be overruled but the SEC urged Alison Nathan, the US District Judge, to reject his bid, according to reports.
He did as told and sold the stake, which sparked a price tumble and since got rid of over US$16bn more of the stock.